IMF Chief Calls for G20 Backing on Debt Relief and Sustainable Growth Measures – Awoko Newspaper

By [email protected]

Freetown, SIERRA LEONE – At a high-level meeting of the G20 Finance Ministers and Central Bank Governors in Cape Town, South Africa, International Monetary Fund (IMF) Managing Director Kristalina Georgieva urged global leaders to unite in tackling mounting economic challenges. She emphasized the need for decisive action to restore economic stability, address debt vulnerabilities, and drive sustainable growth.

Georgieva expressed her appreciation to the South African government for hosting the forum and commended Finance Minister Enoch Godongwana and Reserve Bank Governor Lesetja Kganyago for their leadership in fostering meaningful discussions.

With global growth forecasted to remain at a modest 3.3% this year and next, Georgieva underscored the pressing need for economic revitalization. While the U.S. is expected to outpace the European Union in growth, emerging markets and developing economies are projected to maintain last year’s growth levels. She noted that the ongoing global disinflation trend is likely to continue, with inflation aligning with central bank targets as labor markets cool and energy prices stabilize.

However, uncertainty looms over economic policies, particularly in the U.S., where shifts in trade regulations, taxation, public spending, and immigration policies could have widespread repercussions. Other countries are also adjusting their economic strategies, making the global outlook increasingly complex.

Georgieva stressed that nations must adopt policies that ensure durable economic growth, safeguard macroeconomic stability, and strengthen fiscal resilience. She highlighted the importance of managing public debt sustainably, improving domestic revenue collection, and optimizing public spending. Such measures, she argued, will equip economies to weather future shocks and support long-term growth.

The IMF chief also called for ambitious structural reforms to boost productivity, including cutting red tape, fostering competition, supporting entrepreneurship, enhancing education, and leveraging transformative technologies like artificial intelligence. While domestic policy adjustments are vital, she acknowledged that many nations require external assistance to implement these reforms effectively.

Debt challenges remain a significant concern, with some countries in urgent need of restructuring and others burdened by high interest payments that stifle investments in essential sectors like education and infrastructure. Georgieva reaffirmed the IMF’s commitment to providing policy guidance, capacity-building support, and financial assistance to member states. She highlighted the Global Sovereign Debt Roundtable as a key platform for tackling debt sustainability issues.

Closing her address, Georgieva reiterated the IMF’s unwavering dedication to fostering global economic stability and helping nations achieve sustainable and inclusive prosperity. ZIJ/5/3/2025

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